LANSING, Mich. – Teachers and other school employees hired after Jan. 1, 2013, would begin to pay a fair share of their own retirement benefits under legislation that recently passed the Michigan Senate, according to The Detroit News.

Senate Bill 1040 closes the defined-benefit pension system to new hires and places them in a 401(k)-style defined-contribution plan, The News reported. The Michigan Public School Employees’ Retirement System has about $45 billion in unfunded liability.

SOURCE: The Detroit News, “Michigan Senate OKs measure that ends pensions for new school employees," May 17, 2012